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Conflict of Interest: Opinion 855
Daily Record Staff//August 24, 2011//
Listen to this articleNYSBA Committee on Professional Ethics
Conflict of Interest
Referrals
Opinion 855
Background: The inquiring lawyer represents clients in personal injury cases. One of the inquiring lawyer’s clients is in need of additional funds during the pendency of the lawsuit. The inquiring attorney’s spouse owns a legal financing company that provides necessary funds to clients in need of financing during the pendency of a lawsuit.
Question: When clients of a personal injury law firm have financing needs in connection with contemplated or pending litigation may a lawyer at that firm refer such clients to a legal financing company formed by the lawyer’s spouse for the purpose of advancing funds to the client?
Opinion: A lawyer conducting litigation for a client may not refer the client to a litigation financing company owned by the inquiring lawyer’s spouse to provide financial assistance that the lawyer personally would be barred from providing.
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